Correlation Between Blrc Sgy and Mainstay
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Mainstay at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blrc Sgy and Mainstay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Mainstay Sp 500, you can compare the effects of market volatilities on Blrc Sgy and Mainstay and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blrc Sgy with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Mainstay.
Diversification Opportunities for Blrc Sgy and Mainstay
Very weak diversification
The 3 months correlation between Blrc and Mainstay is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Blrc Sgy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blrc Sgy Mnp are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Mainstay go up and down completely randomly.
Pair Corralation between Blrc Sgy and Mainstay
Assuming the 90 days horizon Blrc Sgy is expected to generate 3.58 times less return on investment than Mainstay. But when comparing it to its historical volatility, Blrc Sgy Mnp is 3.55 times less risky than Mainstay. It trades about 0.08 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,504 in Mainstay Sp 500 on October 24, 2024 and sell it today you would earn a total of 86.00 from holding Mainstay Sp 500 or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Mainstay Sp 500
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Mainstay Sp 500 |
Blrc Sgy and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Mainstay
The main advantage of trading using opposite Blrc Sgy and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Mainstay can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay will offset losses from the drop in Mainstay's long position.| Blrc Sgy vs. Fpa Queens Road | Blrc Sgy vs. Heartland Value Plus | Blrc Sgy vs. Applied Finance Explorer | Blrc Sgy vs. Great West Loomis Sayles |
| Mainstay vs. Barings High Yield | Mainstay vs. Blrc Sgy Mnp | Mainstay vs. Nuveen Strategic Municipal | Mainstay vs. Artisan High Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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